Trendline is a powerful trading tools for the traders. This trading system is based on trendline breakout. It is combined with MACD which can give you more accuracy for taking entry. This trading system is very simple which is suitable for professional and beginners.
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How to take Buy entry
You need to draw a up trendline. You have to draw trendline by joining the swing low in the up trend market. You should not draw any line over the candle. After drawing trendline, you have to wait for breakout of this up trendline. When it breaks trendline, then you need to wait for getting confirmation from MACD. At the time of breakout, MACD should be over 0.0 level. If MACD is above 0.0 level, then you can take buy entry.
How to take Sell entry
You need to draw down trendline. You have to draw down trendline by joining the swing high in down trend market. You have to wait for breakout for taking sell entry. When it breaks down trendline, then you have to check MACD. If MACD is below 0.0 level at the same time, then you can take sell entry.
Time frame:H1, H4 and Daily
Take profit and Stop loss:You can set take profit 40-50 pips for H1 time frame. If you get signal from H4 and daily time frame, then you can set take profit more than 100 pips. You can set stop loss 40 pips for H1 time frame. For H4 and daily, stop loss should be 50-70 pips.
Currency pair: Any pairs
Risk warning:This trendline breakout system is reversal trading strategy. So it can be risky if you trade in this system without confirmation. You have to draw trendline accurately for getting good result from this system. You must follow money management for following this system. After practice in demo, you can use this system in your real account